Search found 1943 matches

by bigred77
Thu Jan 18, 2018 10:31 pm
Forum: Personal Finance (Not Investing)
Topic: What are some good, older threads?
Replies: 20
Views: 1826

Re: What are some good, older threads?

“Best watch for around $5,000” :D

viewtopic.php?t=27707
by bigred77
Thu Jan 18, 2018 10:23 pm
Forum: Personal Consumer Issues
Topic: Short Commute or Nicer House?
Replies: 128
Views: 5526

Re: Short Commute or Nicer House?

Even in perfect conditions you described an extra 25min in the car each way. 50min x 5days x 50weeks = 208+ Lost hours per year (in theoretical perfect conditions) It’s not worth it if it public school quality is the same. Your trading all those hours only for a little bit bigger/nicer house. Over a...
by bigred77
Fri Jan 12, 2018 1:57 pm
Forum: Investing - Theory, News & General
Topic: Year 2000 retirees using the '8% rule' - Where are they now?
Replies: 40
Views: 6458

Re: Year 2000 retirees using the '8% rule' - Where are they now?

:idea: What I am saying is that in 1999, there was almost no good information available on withdrawing income during retirement. It's a good thing that we have widespread access to better information today. I think it's far from ideal for many retirees, but I hear talk of the '4% rule' just about e...
by bigred77
Fri Jan 12, 2018 12:07 pm
Forum: Investing - Theory, News & General
Topic: Shares Are Wildly Overpriced. But Bonds May Be Even Worse
Replies: 35
Views: 5641

Re: Shares Are Wildly Overpriced. But Bonds May Be Even Worse

It's almost like the behavior we'd expect to see if interest rates on treasuries were used to discount the future expected cash flows of companies in order to derive stock prices. :mrgreen: (end sarcasm) i.e. when interest rates are low, we should fully expect to see a higher range of valuations. No...
by bigred77
Wed Jan 10, 2018 9:15 am
Forum: Investing - Theory, News & General
Topic: Running Maximum Withdrawal Percentage: Any data on this?
Replies: 26
Views: 1541

Re: Running Maximum Withdrawal Percentage: Any data on this?

The scary part of that chart is how quickly it rises and falls. I wonder how well it aligns with recessions....in other words, do those scary declines align with recessions? The scary declines are actually right around the tops of the bull markets (the precede the subsequent recessions). If you ret...
by bigred77
Wed Jan 10, 2018 8:04 am
Forum: Investing - Theory, News & General
Topic: Running Maximum Withdrawal Percentage: Any data on this?
Replies: 26
Views: 1541

Re: Running Maximum Withdrawal Percentage: Any data on this?

You are looking for the SAFEMAX rate.

See here: https://retirementresearcher.com/willia ... s-safemax/

There are other articles that discuss it as well.
by bigred77
Tue Jan 09, 2018 8:12 am
Forum: Personal Consumer Issues
Topic: The "Forever Home" Myth: Should I Plan on Buying 2 Homes?
Replies: 36
Views: 3282

Re: The "Forever Home" Myth: Should I Plan on Buying 2 Homes?

I don’t know about forever homes but I agree with the premise to limit the number of times you change personal residences and hold real estate for long(er) periods of time. I’m 32 and I hope to move only once more in my lifetime, when the kids leave for college I’m moving to a condo for less mainten...
by bigred77
Mon Jan 08, 2018 8:03 am
Forum: Forum Issues and Administration
Topic: Help me understand question-less financial status (e.g. "2 comma club") threads.
Replies: 175
Views: 8505

Re: Help me understand question-less financial status (e.g. "2 comma club") threads.

I hope they will be allowed to continue. I think they are motivating to others (in a “testimonial” sort of way). I also think it’s probably pretty cathartic to be able to share some exciting news like that in what I think is an appropriate forum when most other avenues would consider such news taboo...
by bigred77
Thu Jan 04, 2018 10:40 pm
Forum: Investing - Theory, News & General
Topic: Article claims: Housing was the world’s best investment over the last 150 years
Replies: 14
Views: 1510

Re: Article claims: Housing was the world’s best investment over the last 150 years

Tell me how the heck they calculated standard deviation for global “housing”. Real Estate is not a liquid, transparent, daily market like publically traded equities. If I buy a house today and sell it in 5 years, I have 2 data points. If I try to calculate my annual standard deviation I’m just guess...
by bigred77
Thu Jan 04, 2018 9:10 pm
Forum: Investing - Help with Personal Investments
Topic: 31..any reason not to allocate 100% stocks in 403b?
Replies: 20
Views: 1358

Re: 31..any reason not to allocate 100% stocks in 403b?

I am 75/25 in my early 30s because I view the significant reduction in portfolio volatility for the price of slightly lower annual returns to be good value. I’m sure in all likelihood I’d end up with more money 30 years from now if I was 100% stocks but I prefer a smoother ride in case I want or nee...
by bigred77
Mon Jan 01, 2018 11:49 pm
Forum: Personal Finance (Not Investing)
Topic: What is your threshold for paying down debt?
Replies: 89
Views: 5770

Re: What is your threshold for paying down debt?

There is a reason businesses have debt, which we rarely discuss--discipline. I feel like we'd be less disciplined about budgeting/saving if we didn't have a mortgage and many investors feel that companies are the same. Maybe other Bogleheads don't feel like discipline would be an issue for them... ...
by bigred77
Sun Dec 31, 2017 4:21 pm
Forum: Investing - Theory, News & General
Topic: Is Beta a distinct factor or a summation of other factors
Replies: 42
Views: 1952

Re: Is Beta a distinct factor or a summation of other factors

I overweight small and value because I'm trying to overweight higher risk, higher return (hopefully), higher standard deviation sub-populations of the overall market that will hopefully be relatively non-correlated to the other parts of my portfolio. I don't think that means I'm conceding the overal...
by bigred77
Sun Dec 31, 2017 1:05 am
Forum: Personal Finance (Not Investing)
Topic: Question on Mortgage Interest deduction under Trump Tax
Replies: 13
Views: 1948

Re: Question on Mortgage Interest deduction under Trump Tax

The final bill suspends (eliminates) the deduction for interest arising from home equity indebtedness for taxable years beginning after December 31, 2017 and through December 31, 2025. Any new mortgage debt acquired after Dec. 15 caps out at $750,000. This $750K total may be split between a first m...
by bigred77
Sun Dec 31, 2017 12:05 am
Forum: Personal Finance (Not Investing)
Topic: Question on Mortgage Interest deduction under Trump Tax
Replies: 13
Views: 1948

Re: Question on Mortgage Interest deduction under Trump Tax

I thought all interest from all home equity loans would no longer be deductible after Dec. 31, 2017. That's for existing equity loans and for new ones activated in 2018. Am I in error? TKS !! Not true. Home equity debt classified as “acquisition debt” used to purchase or “substantially improve” you...
by bigred77
Sat Dec 30, 2017 9:44 pm
Forum: Personal Finance (Not Investing)
Topic: Target Net Worth
Replies: 39
Views: 4488

Re: Target Net Worth

5 million in 2017 dollars but plan to adjust spending to whatever I end up with at age 55 (or whenever I just can’t stand working any longer). My target networth assumes I will need about $1M for a large condo in a prime location and that we utilize the 4% rule with the remainder. We also have a med...
by bigred77
Sat Dec 30, 2017 6:25 pm
Forum: Personal Finance (Not Investing)
Topic: What is your threshold for paying down debt?
Replies: 89
Views: 5770

Re: What is your threshold for paying down debt?

Except it’s not extreme. IB has margin rates well under 3%. Cheaper than your mortgage. So why not? Why would you rather use debt on your dwelling instead of on your stocks? Way easier and cheaper to use margin instead of a mortgage as well. 2.25% (fixed) <-- The rate of my student loans. All other...
by bigred77
Sat Dec 30, 2017 4:47 pm
Forum: Personal Finance (Not Investing)
Topic: What is your threshold for paying down debt?
Replies: 89
Views: 5770

Re: What is your threshold for paying down debt?

I think many bogleheads created habits and attitudes concerning debt when they were younger. Debt is usually most useful when your in your 20s and 30s and just starting out (education, buying a house, buying a car, etc) and don’t have a ton of assets to work with. Bogleheads who came of age decades ...
by bigred77
Thu Dec 28, 2017 7:04 pm
Forum: Investing - Help with Personal Investments
Topic: Maxing out retirement accounts
Replies: 55
Views: 4052

Re: Maxing out retirement accounts

My household has the opportunity to put away about 80k per year in tax advantaged space (including employer match) but we can’t (or won’t) put that much away. Our goal has always been to aim to sock away 25% -33% of Income from day 1 (when we were in our early 20s). One day when the house is paid of...
by bigred77
Thu Dec 28, 2017 6:53 pm
Forum: Personal Finance (Not Investing)
Topic: Another should i buy my dream porsche thread...
Replies: 240
Views: 10851

Re: Another should i buy my dream porsche thread...

Wow never thought this topic would generate 3 pages of responses. A few things to clarify. I never said I would buy the Porsche outright cash. I would never Dump a 3rd of my net worth on a depreciating asset. Monthly payments would be around 1600.00 a month which I can easily swing. This is kind of...
by bigred77
Tue Dec 26, 2017 2:13 am
Forum: Investing - Theory, News & General
Topic: Implications of tax bill on residential real estate (house prices)
Replies: 62
Views: 5669

Re: Implications of tax bill on residential real estate (house prices)

Many home owners who stretched their means to buy high priced and high property taxed homes are very likely to hit with higher federal tax in 2018. For example a married couple with $160K annual income jointly income bought a home at 5x their income, $800K house with $14K annual property tax. They ...
by bigred77
Mon Dec 25, 2017 10:54 am
Forum: Investing - Theory, News & General
Topic: 1st, your education. Then...Location, Location, Location
Replies: 66
Views: 8538

Re: 1st, your education. Then...Location, Location, Location

As an older millennial I agree with most of the original post. Graduate degrees seem like the bare minimum these days if you want to climb the “megacorp” corporate ladder. Big cities are where most of the jobs seem to be. I didn’t job hop but I think that’s good advice for the masses. My addition wo...
by bigred77
Mon Dec 25, 2017 10:43 am
Forum: Investing - Help with Personal Investments
Topic: DD new job has Roth 401K and company 6% match, what is her max employee contribution?
Replies: 7
Views: 439

Re: DD new job has Roth 401K and company 6% match, what is her max employee contribution?

She can contribute the full 18.5k and the company match will be on top of that amount. No need to deduct the match from 18.5k.
by bigred77
Sun Dec 24, 2017 1:00 pm
Forum: Investing - Theory, News & General
Topic: Implications of tax bill on residential real estate (house prices)
Replies: 62
Views: 5669

Re: Implications of tax bill on residential real estate (house prices)

I don’t think the new tax law changes will impact housing prices all that much. The law impacted my household negatively (as in I’m going to be paying higher taxes in 2018) but even if I knew about the tax law changes it still wouldn’t have changed my previous housing decisions. It would have made t...
by bigred77
Sun Dec 24, 2017 1:43 am
Forum: Investing - Theory, News & General
Topic: What is or was your target multiplier (_ x annual expenses) for retirement?
Replies: 41
Views: 5132

Re: What is or was your target multiplier (_ x annual expenses) for retirement?

I pretty much plan to work until 55 and then adjust my expenses to equal 4% of my investable assets, whatever I end up with, and make sure over 50% of those expenses are discretionary. I will likely annuitize some funds at some point but plan to keep all other assets at around a 60/40 AA. I reserve ...
by bigred77
Sat Dec 23, 2017 12:32 pm
Forum: Personal Finance (Not Investing)
Topic: 2018 HELOC Rules, Foreign tax credit, ACA tax
Replies: 11
Views: 916

Re: 2018 HELOC Rules, Foreign tax credit, ACA tax

I saw the text above on kitces website and am planning on “acquisition debt” in the form of HELOCs or HELs to still be deductible (no idea about a cap but I assume total acquisition debt in the aggregate must be under the 750k debt. I haven’t confirmed or verified that assumption because I’m well un...
by bigred77
Sat Dec 23, 2017 1:51 am
Forum: Personal Finance (Not Investing)
Topic: Do you see a meaningful change in your income with new Tax Bill?
Replies: 260
Views: 19996

Re: Do you see a meaningful change in your income with new Tax Bill?

Our household will see an increase in taxes by about 10%. We had heavy property tax, mortgage interest, and sales tax deductions under the old rules. Nothing life changing but I’m not exactly thrilled about it. Once our new baby is born we’ll benefit from the tax credit and if we have a second child...
by bigred77
Wed Dec 20, 2017 9:44 am
Forum: Personal Finance (Not Investing)
Topic: House purchase considerations
Replies: 33
Views: 2701

Re: House purchase considerations

If I were potentially in the housing market like you are I would simply wait until the tax bill shakes out so I had some certainty, then I could make a decision with full information. I really don't think it will impact prices up or down 10% but I would personally just want to pencil out the numbers...
by bigred77
Sun Dec 17, 2017 12:53 am
Forum: Personal Finance (Not Investing)
Topic: Financial Assistance to Adult Child (health insurance)
Replies: 107
Views: 5818

Re: Financial Assistance to Adult Child (health insurance)

hand, she does not have a career failure. She makes double the median income for her age bracket. Her problem is her spending patterns. If she makes double the median income for her age bracket then 400 extra bucks a month shouldn’t break her. It’s her own fault she lost the previous insurance anyw...
by bigred77
Sun Dec 17, 2017 12:25 am
Forum: Personal Consumer Issues
Topic: How much do you spend on food per month, per person?
Replies: 151
Views: 8980

Re: How much do you spend on food per month, per person?

Probably 400-500 per person, per month for everything we buy at the grocery store, liquor store, and restaurants.

That’s for 2 adults. I’m sure once we add kids the price per person will come down.
by bigred77
Sat Dec 16, 2017 2:07 pm
Forum: Investing - Theory, News & General
Topic: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?
Replies: 42
Views: 1803

Re: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?

Putting 10 years expenses into fixed income and then spending solely from that bucket over the first 10 years of retirement with the remaining assets in equities is just using mental accounting to describe a rising equity glidepath. Going with a conservative AA upon retirement and then gradually ra...
by bigred77
Sat Dec 16, 2017 1:27 pm
Forum: Investing - Theory, News & General
Topic: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?
Replies: 42
Views: 1803

Re: Is 120 months of expenses in Fixed Income plus 100/0 a viable long term allocation?

Putting 10 years expenses into fixed income and then spending solely from that bucket over the first 10 years of retirement with the remaining assets in equities is just using mental accounting to describe a rising equity glidepath. Going with a conservative AA upon retirement and then gradually ram...
by bigred77
Wed Dec 13, 2017 10:23 pm
Forum: Investing - Help with Personal Investments
Topic: Thoughts on using safe-ish investments to buy S&P 500 on margin in December?
Replies: 176
Views: 5240

Re: Thoughts on using safe-ish investments to buy S&P 500 on margin in December?

My advice is that you should stop day trading with 6 figure sums of borrowed money. You have no actionable insights on short term price movements, in either magnitude or direction. You are a retail investor betting on a random walk price pattern with an upward trend over long time periods that aren’...
by bigred77
Mon Dec 11, 2017 9:24 am
Forum: Personal Finance (Not Investing)
Topic: Can we afford to live on one income?
Replies: 70
Views: 5766

Re: Can we afford to live on one income?

OP, My wife and I have our first due in February and are planning for her to stay home as well. Our household income and expenses are eerily similar to yours. We are going to try and make it work as well. I'm going into this knowing it's going to be tight but I'm hoping for a couple of salary bumps ...
by bigred77
Thu Dec 07, 2017 12:38 pm
Forum: Personal Consumer Issues
Topic: Okay come clean....How man people share passwords for streaming services?
Replies: 41
Views: 1709

Re: Okay come clean....How man people share passwords for streaming services?

Unfortunately I pay for many services and extended family all uses my passwords.
by bigred77
Wed Dec 06, 2017 8:49 pm
Forum: Investing - Theory, News & General
Topic: Does it look like a bubble to you?
Replies: 42
Views: 3745

Re: Does it look like a bubble to you?

You might also take into consideration the effect of global IPOs over that time frame. Every IPO and new stock offering just bumps the line higher. How many private companies went public?
by bigred77
Wed Dec 06, 2017 8:20 pm
Forum: Investing - Theory, News & General
Topic: Does it look like a bubble to you?
Replies: 42
Views: 3745

Re: Does it look like a bubble to you?

Stocks are ownership of businesses that explicitly set out to make money. Not all profits are returned to shareholders via dividends and/or buybacks. Hence stock values rise even holding valuations constant. It’s supposed to go up. It’s common to go up and down in fits and spurts. That chart is in n...
by bigred77
Tue Dec 05, 2017 7:50 pm
Forum: Investing - Theory, News & General
Topic: Larry Swedroe: Bitcoin & It’s Risks
Replies: 57
Views: 4994

Re: Larry Swedroe: Bitcoin & It’s Risks

I thought that article was excellent. I have the same position when it comes to bitcoin: The technology behind it is ground breaking but it's without a doubt purely speculative at this time. You are buying it today with the hopes of reselling it for a higher price in the future. It is not a producti...
by bigred77
Tue Dec 05, 2017 1:34 pm
Forum: Investing - Theory, News & General
Topic: How would you value a business if you considered investing in it
Replies: 30
Views: 2579

Re: How would you value a business if you considered investing in it

The "real value" of a private company is 1 of 3 things. 1.) Unknowable (this would be my position) 2.) What someone is willing to pay for it 3.) Estimated Calculated by taking some metric (EBIT, EBITDA, FCF, etc.) and applying what you deem to be an "appropriate" multiplier depending on perceptions ...
by bigred77
Mon Dec 04, 2017 1:24 pm
Forum: Personal Finance (Not Investing)
Topic: The College Bubble - investment opportunities after the collapse?
Replies: 114
Views: 8103

Re: The College Bubble - investment opportunities after the collapse?

.... I plan to .... The cool thing is that your child[ren] may want and do something completely different from your expectations. Will you be ready for that? If that included foregoing a college education, I would really struggle with that. bigred77, << In my mind it's all about helping my kids obt...
by bigred77
Mon Dec 04, 2017 12:48 pm
Forum: Personal Finance (Not Investing)
Topic: The College Bubble - investment opportunities after the collapse?
Replies: 114
Views: 8103

Re: The College Bubble - investment opportunities after the collapse?

I find this whole discussion interesting. I have a baby on the way and am already planning on how I can amass 6 figure sums of money in 529 accounts by the time my kid(s) hit age 18. I plan to instill the expectation in my children that graduate degrees are the norm. I plan to encourage them to atte...
by bigred77
Thu Nov 30, 2017 8:02 am
Forum: Personal Finance (Not Investing)
Topic: Who are heirs? No will.
Replies: 41
Views: 4581

Re: Who are heirs? No will.

You likely do not need a lawyer if you or someone else can put just a little time and effort into this.

The estate will be governed by Indiana state law regarding descent and distribution. Just google it. It’s not as intimidating as it might sound.
by bigred77
Mon Nov 27, 2017 11:18 pm
Forum: Investing - Theory, News & General
Topic: What makes real estate a unique sector?
Replies: 25
Views: 1717

Re: What makes real estate a unique sector?

I do consider REITs as an acceptable proxy for diversified real estate ownership. I know not everyone agrees with that view, all you have to do is look upthread, but it’s close enough for my satisfaction. Because I view them as an acceptable enough proxy, I overweight them in my portfolio because I ...
by bigred77
Mon Nov 27, 2017 11:06 pm
Forum: Investing - Help with Personal Investments
Topic: Asset Allocation - SARs and RSUs
Replies: 5
Views: 301

Re: Asset Allocation - SARs and RSUs

I liquidate all of my RSUs as they vest. I don’t really consider unvested shares until they vest. I consider it income and these do not impact my AA decisions. I also have options that don’t expire for 10 years that I just let ride (I never figured out a plan to optimize these but there all under wa...
by bigred77
Mon Nov 27, 2017 10:56 pm
Forum: Investing - Theory, News & General
Topic: What did you do right?
Replies: 96
Views: 9708

Re: What did you do right?

I started investing roughly a quarter of my income since age 23. I found Bogleheads at age 23. I’ve been lucky to have never been unemployed. I was very career focused in my 20s and advanced quickly. I got 2 masters degrees at a reasonable, subsidized cost. It also helped that I was very lucky in th...
by bigred77
Mon Nov 27, 2017 10:40 pm
Forum: Investing - Help with Personal Investments
Topic: Can I afford a $1,400,000 house
Replies: 93
Views: 8883

Re: Can I afford a $1,400,000 house

I think you can afford it but I would recommend waiting a few years, living a great life on 10k a month in expenses, and stockpiling assets while paying down debt before upgrading the house. I mean it’s not like your slumming it in the name of making financial progress. Your living higher on the hog...
by bigred77
Sat Nov 25, 2017 12:10 pm
Forum: Personal Consumer Issues
Topic: What are average incomes for luxury vehicle purchases? Will help me decide
Replies: 57
Views: 3833

Re: What are average incomes for luxury vehicle purchases? Will help me decide

Buy what you want. I don’t think there’s any data to answer the question you asked but if your household makes 100k per year I don’t think it’s unreasonable to buy 2 $20k vehicles every 8-10 years. If you make 200k per year then 2 $40k vehicles is the same percentage. That should get you into the BM...
by bigred77
Sat Nov 25, 2017 1:25 am
Forum: Personal Consumer Issues
Topic: Etiquette question: Paying for meals out & out of town guests
Replies: 79
Views: 5753

Re: Etiquette question: Paying for meals out & out of town guests

My wife and I hosted thanksgiving this year for 17 people including 5 overnight guests for multiple nights. The cost of everything was paid for by us (and man was it more than I expected). We also went out to dinner on Wed and everyone split checks. I was just happy the bill didn’t get set down in t...
by bigred77
Sat Nov 25, 2017 1:10 am
Forum: Investing - Help with Personal Investments
Topic: if you could use only 1 investment firm...
Replies: 79
Views: 5048

Re: if you could use only 1 investment firm...

I only use 1 right now as it is, Fidelity, and I’ve been very pleased.

If I had reason to utilize more exotic tools it would be Interactive Brokers but Ive yet to use them myself.
by bigred77
Thu Nov 23, 2017 12:24 pm
Forum: Investing - Help with Personal Investments
Topic: How Does Real Estate Affect Asset Allocation?
Replies: 34
Views: 2450

Re: How Does Real Estate Affect Asset Allocation?

I only have a couple of fuzzy “rules of thumb”. My personal residence is an asset and part of my net worth but it does not affect the AA of my financial assets. If I had investment real estate, I would prefer it’s value (net of financing) not make up more than 1/3 of my net investible assets. If I h...